- NASDAQ Composite +0.45% Dow +0.19% S&P 500 +0.33% Russell 2000 +0.36%
- NASDAQ Advancers: 1295 Decliners: 1048
- Today’s Volume (vs. Monday) +15.75%
- Crude $57.00 +$0.14, Gold $1454.10 -$3.00, VIX 12.68 -0.01
- President Trump speaks at Noon on U.S. economic policy in New York
- U.S. NFIB Small Business Index for October higher than forecast at 102.4 vs 102 expected and higher than the 101.8 in September
- Reaction to earnings: CVET +25%, DXC +14%, ROK + 13%, GO +8%, TSN +4.5%, DHI +1%, AAP -8%, CBS -2.5%
Markets are trading slightly higher this morning awaiting President Trump’s key speech at the Economic Club of New York at noon. Traders will be hanging on his every word looking for any insights to U.S.–China trade policy. White House spokesman Judd Deere said, “You can expect the president to highlight how his policies of lower taxes, deregulation, and fair and reciprocal trade have supported the longest economic recovery in U.S. history with record low unemployment, rising wages, and soaring consumer confidence." Expect the President to read the pre-prepared remarks, but look for interesting commentary if he goes off-script or fields Q&A.
Yesterday was Veterans Day and U.S. equity markets were open while the bond market and banks were closed. If you blinked or went to the Veterans Day parade or like me, watched your son play in a fall lacrosse tournament you might have missed it, but the Dow Jones Industrial Average made a new all-time high. The Nasdaq Composite, S&P 500 and the Russell 2000 all closed slightly lower. Yesterday’s trading volumes were some of the lightest of the year with only 5.5 billion shares trading on the consolidated tape. The average yearly daily trading volume on the consolidated tape is only 6.99 billion shares a day which is 3.3% less than 2018’s daily trading average.
Uncharacteristically today, all 11 of the major S&P 500 sectors are trading flat to higher. Not one sector is down at this moment though Staples are trading close to flat. The best performers are Healthcare and Basic Material. Crude oil is up over 1% while Gold is trades lower. The dollar is higher while the yield on the 10-yr sits at 1.95%.
Plenty of M&A and potential private equity deals announced this week. Dow componentWalgreens Boots Alliance (WBA) explores an offer from private equity firm KKR. This announcement yesterday helped give the Dow a boost to close at record highs. Also today, in the adult beverage sector, Anheuser-Busch InBev (BUD) announced they will acquired the remaining shares of Craft Brew Alliance (BREW) for $16.50 a shares in a deal expected to close by end of 2020. YTD, global M&A stands at $4.7 trillion of announced or proposed deals which is down 3.8% from this time last year. In North America, we have seen $2.4 trillion of deals which is down 3.2% from this point last year.
Alibaba (BABA) logged more than 268 billion yuan ($38.3 billion) of purchases during its Singles’ Day extravaganza yesterday exceeding last year’s record event. Bloomberg reported that this year’s 24-hour shopping event has become an annual ritual for Asia’s largest company, with an estimated half-billion shoppers browsing the site for deals. Shoppers from China to Russia and Argentina scoop up everything from Apple Inc. and Xiaomi Corp. gadgets to Ugandan mangoes.
Brian’s Technical Take
With Brian out, I thought it would be appropriate to highlight the Main Street Index, better known as the Dow Jones Industrial Average. With the Index trading at all-time highs, it is interesting that the Dow still has room to run. Depending on the comments (or mood) of the President today, the index could be have a significant move (one way or another) as many of the Dow members' business lines are directly tied to international trade and specifically to China trade.
Below is the Dow’s 52-week chart.
Nasdaq's Market Intelligence Desk (MID) Team includes:
Charles Brown is Associate Vice President on The Market Intelligence Desk with over 20 years of equity capital markets experience. Charlie has extensive knowledge of equity trading on both floor and screen-based marketplaces. Charlie assists with the management of The Market Intelligence Desk and works with Nasdaq listed companies providing them with insightful objective trading analysis.
Steven Brown is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq with over twenty years of experience in equities. With a focus on client retention he currently covers the Financial, Energy and Media sectors.
Christopher Dearborn is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq. Chris has over two decades of equity market experience including floor and screen-based trading, corporate access, IPOs and asset allocation. Chris is responsible for providing timely, accurate and objective market and trading-related information to Nasdaq-listed companies.
Brian Joyce, CMT is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq. Before joining Nasdaq, Brian spent 16 years as an institutional trader executing equity and options orders for both the buy side and sell side. He also provided trading ideas and wrote technical analysis commentary for an institutional research offering. Brian focuses on helping Nasdaq’s Financial, Healthcare and Transportation companies, among others, understand the trading in their stock. Brian is a Chartered Market Technician (CMT).
Michael Sokoll, CFA is Associate Vice President on the Market Intelligence Desk (MID) at Nasdaq with over 25 years of equity market experience. In this role, he manages a team of professionals responsible for providing NASDAQ-listed companies with real-time trading analysis and objective market information.